Newsletter - Autumn 2010

Introduction »

War on Wages

New rate for apprentices

A new addition to the National Minimum Wage (NMW) family is being introduced on 1 October 2010. For the first time there will be a minimum wage for qualifying apprentices of £2.50 per hour. This rate will generally apply to apprentices under 19 years old and those apprentices aged 19 and over who are in the first year of their apprenticeship. All other apprentices are entitled to the NMW rate appropriate for their age. For further information including the definition of an apprentice for NMW purposes visit: www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_175113

Expansion of the main rate band

In addition to the above, the main rate band is to expand to cover those workers aged 21 and over rather than the existing band which covers workers aged 22 and over. This change on 1 October 2010 means that anyone aged 21 on a minimum wage will see an increase of £1.10 per hour as detailed below.

Increases for other rates

There will also be an increase in the other rates from 1 October 2010. The new and current rates are summarised below.

From

22 and over

Aged 21

18-20

16-17

Apprentices

1 October 2009

£5.80

£4.83

£4.83

£3.57

N/A

1 October 2010

£5.93

£5.93

£4.92

£3.64

£2.50

Introduction »